Australia is making significant strides toward a future of electric mobility, and the growth of electric vehicles (EVs) is expected to continue in the coming years. Recent statistics show that Australia sold 33,410 new EVs in 2022, which is a promising sign for the future of sustainable transportation in the country. The government, businesses, and consumers alike are increasingly recognizing the benefits of EVs, from reduced emissions to lower fuel costs. In this blog post, we will explore the future of electric vehicles in Australia, looking at sales projections, new models set to hit the market, advances in charging infrastructure, and government incentives.
An overwhelming number of government incentives, particularly at a state level in NSW, ACT, and South Australia, are driving the adoption of EVs. These incentives include tax credits, rebates, and grants for EV purchases and charging infrastructure installation. For example, the NSW government offers a $3,000 rebate for EV purchases, and the ACT offers a $15,000 interest-free loan for businesses to purchase EVs.
Furthermore, federal incentives introduced by the Labor Government in 2022 are driving customers to purchase EVs on a Novated Lease, which is providing tax benefits for consumers and businesses, as well as driving the second-hand market. Novated Leases allow businesses to purchase vehicles on behalf of their employees, with the employee paying for the lease through pre-tax income. This provides significant tax savings for both the employer and employee, making EVs more affordable and accessible.
While government incentives are helping to drive EV adoption, Australia still needs firm emission standards to push original equipment manufacturers (OEMs) to prioritize Australia for new electric vehicles. Lobbyists, such as the Electric Vehicle Council, are having great success in pushing for these standards, and we can expect to see adoption of emission standards in late 2023 or early 2024. These standards will help ensure that Australia remains competitive in the global EV market and that consumers have access to the latest EV models.
As the demand for EVs grows, automakers are introducing new models to the Australian market. One of the most anticipated new models is the Polestar 2, which boasts a range of up to 507 km on a single charge. The recently released Polestar 3 is also set to hit the market soon, offering an electric SUV option. Another new model is the Hyundai Ioniq 5, which has seen demand well and truly outstrip supply. Just last week, the Hyundai Ioniq 6 was released in Australia, offering a stylish and practical electric sedan option. Unfortunately, the Ioniq 6 did not sell out in its first week of sales, highlighting the need for more education and awareness about the benefits of EVs.
Electric Utes and Four-Wheel Drives
While there are several exciting new EV models hitting the market, we still need electric utes and electric four-wheel drives to fill an important gap in the market. These vehicles are particularly important in Australia, where many consumers require a vehicle with off-road capabilities or the ability to tow heavy loads. Several automakers, including Ford and Tesla, have announced plans to introduce electric utes to the market in the coming years, and we can expect to see more announcements in this area soon.
The future of electric vehicles in Australia is looking bright, with government incentives, advances in charging infrastructure, and the introduction of new EV models. As we move toward a greener future, the adoption of EVs will be a critical part of the transition. While there is still work to be done in terms of emission standards and filling gaps in the market, the progress we